More digital disruption ahead for mainstream news groups, says survey

Traditional news outlets are facing a new wave of disruption as the digital revolution sweeps on, according to a new international survey.

It is likely to further change the relationship between news companies and their audiences and could have profound implications for societies in advanced economies.

According to the third annual digital news report published by the Reuters Institute for the Study of Journalism (RISJ), some news organisations are being outpaced by the speed of change while others show signs of rising to the challenge.

The report, in pointing to new threats to traditional news sources, identifies the smartphone and social media as the most powerful agents of change. It also reveals a clear generational split in how people are both finding and interpreting news.

The RISJ report, which surveyed 18,000 people in 10 countries, contends that established news organisations in some countries, such as Japan and US, are finding it hard to transform print success to the web.

By contrast, in Britain, Denmark, Finland and Germany, traditional news brands have managed to maintain market share online at the same time as driving editorial and business innovation.

Meanwhile, the adoption of new technology is segmenting the news market. Smartphones, which are favoured by young people, are encouraging users to consume news more frequently throughout the day, thereby reducing the dependence on appointment-to-view television and printed newspaper issues.

The readers and viewers of tomorrow prefer to receive news through mobile devices and consequently tend to "snack" more in terms of both the time spent on sites and the type of content they consume.

Significantly, across all 10 countries surveyed by YouGov on behalf of the Reuters Institute, 36% of 18-24s say they use smartphones as their primary access for news.

The report suggests that as this trends increases, different groups will develop their own, narrow relationship with news sources rather than sharing a broader range of views.

One of its editors, Nic Newman, says: "Across the world we see a generational split in terms of platforms, formats and the type of emerging news brands that are being consumed."

The research confirms the increasing popularity of new digital players with their commitment to mobile and social news formats. Both the Huffington Post and Buzzfeed are said to be attracting significant audiences in a number of European countries as well as the US and Brazil.

But Google News remains a leading player in Italy, France and Germany while Yahoo! is the top news site in Japan.

In the US and Japan, these digital companies – the so-called pure players and aggregators - now rival traditional media in popularity online, putting further pressure on business models.

Despite this trend, the report offers reasons for some established news outlets to remain cheerful.

In most countries the majority of news consumed online still comes from established newspaper and broadcaster brands, whose work is particularly valued in covering stories of national and international importance.

The report also reveals that much of the conversation in social media is driven by the work of mainstream journalists - with 64% of Twitter users in Britain (about 5.4m people) following a professional news account.

Dr David Levy, director of the Reuters Institute, which is based at Oxford university, says: "In some countries, such as the UK, established news brands have retained their loyalty in the more competitive online environment.

"But the rapid growth of social media as a way of discovering and consuming news has a range of possible ramifications.

"While choice proliferates, consumption may narrow; reliance on recommendations from like minded friends could mean people are less exposed to a broad news agenda."

The report also highlights a growing trend towards journalists as a key driver of trust, engagement, and consumer loyalty.

In some countries, notably the US, France and Spain, large numbers of people are identifying with journalists directly and this in turn is fuelling the growth of news start-ups built around so-called journalistic "stars".

As for the continuing debate about paywalls versus free access, the report offers mixed views on consumers' attitudes to paying for content.

Despite the growing number of paywalls, the report finds only a minority of people have paid for digital news in the last year (ranging from 7% in the UK to 11% in the US, 14% in Finland and 22% in Brazil).

But, in some countries, many more do say they might pay in the future and there has been a substantial increase in the proportion taking out a subscription.